Date: 2008-06-17
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MUSKOGEE, OKLAHOMA - Sheldon J. Sperling, United States Attorney for the Eastern District of Oklahoma, announced today that JEFF McMAHAN, and LORI McMAHAN, husband and wife, both of Tecumseh, Oklahoma, were found guilty by a federal jury in Muskogee. JEFF McMAHAN is the Oklahoma State Auditor and Inspector.
(Media-Newswire.com) - MUSKOGEE, OKLAHOMA - Sheldon J. Sperling, United States Attorney for the Eastern District of Oklahoma, announced today that JEFF McMAHAN, and LORI McMAHAN, husband and wife, both of Tecumseh, Oklahoma, were found guilty by a federal jury in Muskogee. JEFF McMAHAN is the Oklahoma State Auditor and Inspector.
“The conspiracy is the primary charge,” stated United States Attorney Sheldon J. Sperling. “The defendants conspired to commit dishonest public service mail fraud. They also conspired to commit racketeering in the form of illicit interstate travel.”
“After ten days of trial, the jury deliberated into the night on Friday, and for over five hours on Saturday before returning guilty verdicts for each of the defendants,” continued U.S. Attorney Sperling. “We are appreciative of their time and attention and for their discerning service.”
“Chief District Judge James H. Payne, in the United States District Court for the Eastern District of Oklahoma, presided over the trial. Judge Payne entered the verdicts of guilt, and ordered the completion of presentence reports. Sentencings will be scheduled upon their completion. Pursuant to federal law, both defendants remain on bond, pending sentencing.”
“The charges arose from an investigation by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division. The defendants were indicted by a federal grand jury in January 2008.”
“JEFF and LORI McMAHAN conspired with each other and with others, to commit mail fraud and racketeering. In his official capacity as Oklahoma State Auditor and Inspector, JEFF McMAHAN deprived others of the intangible right of honest services. The defendants received bribes and gratuities in exchange for favorable treatment by JEFF McMAHAN, to an un-indicted co-conspirator/ schemer and other entities owned by the un-indicted co-conspirator/schemer and others.”
“During JEFF McMAHAN’s campaign for Oklahoma State Auditor, JEFF McMAHAN, LORI McMAHAN and others on McMAHAN’s behalf, received cash, other items of value, supplies and straw contributions which far exceeded the legal limits of allowed contributions.”
“Assistant United States Attorneys Gay Guthrie and Ryan Roberts represented the United States at trial. These verdicts are a remarkable testament to the diligent investigation and prosecution by AUSAs Gay Guthrie and Ryan Roberts, special agents of the FBI, and IRS-CID.”
“We are grateful for the opportunity to have presented the admissible evidence available to us,” remarked U.S. Attorney Sperling. “The evidence we presented was the product of what the defendants did. The witnesses were the defendants’ trusted associates and friends – until the investigation became known. The defendants tried to keep their actions under the radar. They took thousands of dollars in illegal campaign contributions, gifts, jewelry, and trips. They concocted cover stories. Public corruption is simply a disgrace.”
“We are grateful to Chairman John Raley and the State Ethics Commission for their leadership to promote honest government service,” U.S. Attorney Sperling noted.
“Public corruption poses probably the greatest threat to the credibility of all levels of government,” stated Michael B. Ward, Special Agent in Charge of Oklahoma City Division of the FBI. “It undermines the community’s faith and confidence, and erodes trust in the institution upon which the democratic system is based. The FBI is committed to addressing public corruption and will continue to work with all partners in pursuit of these efforts.”
“The laws were created equally for all and no one is above them, including public officials. IRS-Criminal Investigation is committed to insuring that those in public office comply with the same laws as the citizens they were elected to serve,” said Mike P. Lahey, Special Agent in Charge of IRS Criminal Investigation in Oklahoma .
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